Politics Now

Why the housing crisis is such a 'wicked problem'

Dec 10, 2025
Tom Crowley, a political journalist and ABC's housing correspondent, takes a deep dive into Australia's housing crisis. He explains why housing is a 'wicked problem' with complex political implications. Tom evaluates the effectiveness of the Labor’s 5% first-homebuyer deposit scheme, warning it may drive prices higher. He also discusses potential solutions like gentle density to increase supply and scrutinizes the ambitious 1.2 million homes target for 2030. With insights into planning blockages and shifts in political stances, Tom provides a thought-provoking look at the future of housing in Australia.
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INSIGHT

Federation Creates A Structural Blockage

  • Housing is a 'wicked' federal problem because states control planning while the Commonwealth has money but limited constitutional power.
  • Tom Crowley argues this mismatch makes long-term fixes slow and complex.
INSIGHT

Shortfall In Housing Supply Explains Affordability

  • The core cause is that we no longer build enough homes relative to population growth.
  • Crowley says the falling construction rate is the root of affordability problems over decades.
ADVICE

Pair Guarantees With Supply Reforms

  • Demand-side fixes like deposit guarantees help individuals but don't fix supply or long-term prices.
  • Policymakers should pair short-term relief with structural supply measures to avoid merely shifting demand.
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